Nucor Signs Deal to Acquire HSS Manufacturer
09/19/2016 - Nucor Corp. is acquiring structural tube manufacturer Independence Tube Corp. for US$435 million, a move that strengthens its grip on the non-residential construction market.
In an announcement Monday, Nucor said the deal is highly complementary as Independence Tube has the second-largest share of the market for hollow structural sections. Nucor, meanwhile, already is the leader in a variety of construction steels.
Moreover, Nucor is installing a large-diameter tube mill at a plant in Iuka, Miss. Given that, the companies will be able to offer the widest range of hollow structural sections in North America, Nucor said.
"Independence Tube is a natural fit with Nucor. Their business model is similar to ours with extremely efficient manufacturing facilities and a highly variable cost structure,” said Nucor chairman and chief executive John Ferriola in a statement.
“This acquisition is another important step in our long-term strategy to increase the number of value-added products we can offer our customers. It also adds to our portfolio another growth platform for our team to use to grow our company."
Independence produces about 600,000 tons annually and purchases hot-rolled coil from outside suppliers. Its plants in Illinois and Alabama are near Nucor's sheet mills in Decatur, Ala.; Crawfordsville, Ind.; and Ghent, Ky.
Moreover, Nucor is installing a large-diameter tube mill at a plant in Iuka, Miss. Given that, the companies will be able to offer the widest range of hollow structural sections in North America, Nucor said.
"Independence Tube is a natural fit with Nucor. Their business model is similar to ours with extremely efficient manufacturing facilities and a highly variable cost structure,” said Nucor chairman and chief executive John Ferriola in a statement.
“This acquisition is another important step in our long-term strategy to increase the number of value-added products we can offer our customers. It also adds to our portfolio another growth platform for our team to use to grow our company."
Independence produces about 600,000 tons annually and purchases hot-rolled coil from outside suppliers. Its plants in Illinois and Alabama are near Nucor's sheet mills in Decatur, Ala.; Crawfordsville, Ind.; and Ghent, Ky.
